Paying extra on a lease

[circatee]

I am looking for feedback, from those experienced with leases.
When you lease a car (no down payment), does it make any sense to pay extra a month, or best to merely pay the requested monthly amount?

Thanks!

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[RickMachE]

No, it makes no sense. You owe the full amount of the lease payments, whether you pay them off over 5 years, 2 years, or 1 day.

Did you truly lease a vehicle, not Ford Options?

 

[E90alex]

No there is no point in paying extra on a lease. Unless you are paying it off and buying out the whole car.

 

[AtomicInternet]

Pay the minimum and don't buy it at the end. With EVs it's almost ALWAYS cheaper to buy a used one than buy out your lease. Deprecation is way ahead of their estimates.

 

[circatee]

No, it makes no sense. You owe the full amount of the lease payments, whether you pay them off over 5 years, 2 years, or 1 day.

Did you truly lease a vehicle, not Ford Options?

Hmm, the paperwork shows Ford Credit (via CAB East, LLC), and notes the Lessee and Lessor. I see no mention of "Ford Options" .

Additionally, I was/am not aware of Ford Options...

 

[E90alex]

Hmm, the paperwork shows Ford Credit (via CAB East, LLC), and notes the Lessee and Lessor. I see no mention of "Ford Options" .

Additionally, I was/am not aware of Ford Options...

Ford options was a hybrid finance option for the first couple years or so before they started doing normal leasing on the Mach-E.

 

[circatee]

PS: I have no ballon payment, on the 'type' of lease I have...

 

[RickMachE]

PS: I have no ballon payment, on the 'type' of lease I have...

Then you have a lease. Paying a dime extra ahead of time is throwing money away.

 

[tpsfoto]

If you pay off more early it not good due to your gap insurance provided in the lease (if yours came with it)
if the car is stolen or destroyed they won’t cover the extra payments, only the gap of what you owe and what you paid in.

 

[MachhE-CT]

Paying off a lease early doesnt' buy you anything. You owe the lease payments so you might as well get a little interest on the extra money and save it for a down payment on your next car. . Paying off a loan early can save you interest and if you make those extra payments early in the loan period it will have a larger effect. Paying a bigger chunk up front can lower your lease payment and your buyout and narrow the gap in the event of a total loss and .

 

[EB87]

I lease mine the only thing I’ll do occasionally is make a payment early. So like if I wanted to make my August payment now that way I don’t have to think about it till September. It’s not doing anything to get the lease paid off early or anything truly beneficial but I’ve done that before just so personally it’s one less bill I need to think about for 2 months lol

 

[4sallypat]

You were smart to not pay extra monies like a down on the lease!

Just be smart and don't pay any more than what is required monthly.

And make sure you don't damage the vehicle - especially the tires/wheels which will ding you.

At the end of your lease, get a used car valuation and compare it with your residual.

And determine if you want to keep it by buying out the lease, if it makes sense.

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